AT&S Austria Technologie & Systemtechnik AG

Earnings Release • Nov 26, 2013

01

Key figures

(If not otherwise stated, all figures in EUR 1,000)

	before non recurring items	after non recurring items	before non recurring items	after non recurring items
CONSOLIDATED STATEMENT OF PROFIT OR LOSS		H1 2013/14		H1 2012/13 1)
Revenue		299,933		254,771
thereof produced in Asia		75%		74%
thereof produced in Europe		25%		26%
EBITDA	68,416	65,412	43,911	43,911
EBITDA margin	22.8%	21.8%	17.2%	17.2%
EBIT	33,571	30,567	8,530	8,530
EBIT margin	11.2%	10.2%	3.4%	3.4%
Profit for the period	24,961	21,957	2,063	2,063
thereof owners of the parent company	24,944	21,940	2,066	2,066
Cash earnings	59,789	56,785	37,447	37,447
CONSOLIDATED STATEMENT OF FINANCIAL POSITION		30 September 2013		31 March 2013 1)
Total assets		773,734		726,663
Total equity		316,429		304,844
Total equity of owners of the parent company		316,464		304,895
Net debt		202,541		217,409
Net gearing		64.0%		71.3%
Net working capital		114,030		102,679
Net working capital per revenue		19.0%		19.0%
Equity ratio		40.9%		42.0%
CONSOLIDATED STATEMENT OF CASH FLOWS		H1 2013/14	H1 2012/13 1)
Net cash generated from operating activities (OCF)		40,327		21,309
CAPEX, net		39,992		25,471
GENERAL INFORMATION		30 September 2013		31 March 2013 1)
Payroll (incl. leased personnel), end of reporting period		7,071		7,011
Payroll (incl. leased personnel), average		7,034		7,321
KEY STOCK FIGURES		H1 2013/14	H1 2012/13 1)
Earnings per share (EUR)	1.06	0.94	0.09	0.09
Cash earnings per share (EUR)	2.55	2.42	1.61	1.61
Weighted average number of shares outstanding		23,432,997		23,322,588
Market capitalisation, end of reporting period		183,895		194,744
Market capitalisation per equity		58.1%		67.8%
Shares outstanding, end of reporting period		26,690,059		23,322,588
KEY FINANCIAL FIGURES		H1 2013/14		H1 2012/13 1)
ROE 2)	16.1%	15.1%	1.5%	1.5%
ROCE 2)	12.0%	11.4%	3.0%	3.0%
ROS	8.3%	7.3%	0.8%	0.8%

1) Adjusted in application of IAS 19 revised 2) Calculated on the basis of average values

Highlights

• AT&S posted a considerable rise in revenue and profit in the first half of the financial year 2013/14
• Recorded sales increased by 18% to around EUR 300m
• EBITDA advanced by around 50% to EUR 65m
• Earnings per share increased from EUR 0.09* to EUR 0.94
• AT&S is well on track with its Chongqing implementation plan
• AT&S confirms outlook for the full fiscal year 2013/14
• AT&S successfully placed all new shares with investors as of 9th October 2013

03

*compared to HY 2012/13

Statement of the Management Board

Dear shareholders,

Having started the fiscal year 2013/14 in a strong position, we were able to sustain our positive performance during the second quarter. This is confirmed by a significant increase in revenue and profit.

The past weeks were shaped by an important milestone for the future direction of AT&S Group. We successfully placed all the new shares issued under our capital increase among existing shareholders and new investors within the offer period, bringing the total gross proceeds over EUR 100 million. This measure gives us a solid financial footing when it comes to funding upcoming investments.

FIRST HALF YEAR RESULTS In the first half of the financial year 2013/14 AT&S Group posted sales of around EUR 300 million (m), a year-on-year improvement of some 18%. Earnings before interest, taxes, depreciation and amortisation (EBITDA) advanced by around 50% to EUR 65m. Consolidated net income increased from EUR 2m in the same reporting period last year to EUR 22m. Earnings per share increased from EUR 0.09 to EUR 0.94.

The significant improvement in results is attributable to continued strong capacity utilisation at our plants and a more favourable product mix.

Key indicators for the first six months of the financial year 2013/14 are as follows:

• Revenue: EUR 299.93m
• Gross profit: EUR 60.46m for a margin of 20.16%
• EBITDA: EUR 65.41m for a margin of 21.81%
• Operating result: EUR 30.57m for a margin of 10.19%
• Profit before tax: EUR 24.32m for a margin of 8.11%
• Profit for the period: EUR 21.96m for a margin of 7.32%
• Earnings per share: EUR 0.94
• No. of shares outstanding (average)*: 23,433 * Thousands of shares

FINANCING The maturities of the total financial liabilities of EUR 305.4m were as follows:

Less than 1 year:	EUR 137.7m
1–5 years:	EUR 150.4m
More than 5 years:	EUR 17.3m

MOBILE DEVICES CONTINUES STRONG PERFORMANCE First half year segmental revenue was up by about 19% on the same period a year earlier thanks to an optimised product mix, continued strong demand for highvalue HDI printed circuit boards and high capacity utilisation at the Shanghai plant.

INDUSTRIAL & AUTOMOTIVE REPORTED

SUSTAINED HIGH DEMAND The trend towards increased use of high-value printed circuit boards in automotive technology remains unbroken. The medical technology sector also continued its positive development.

Overall, revenue for Industrial & Automotive was up by about 15% or EUR 17m on the same period of 2012/13. The Industrial & Automotive segment now accounts for 44% of consolidated revenue.

ADVANCED PACKAGING Revenue generated by sales of AT&S's patented ECP® technology tripled year on year, a development driven by further expansion of the customer portfolio.

CHONGQING AT&S is well on track with its Chongqing project (entering the IC Substrates business). The first round of investment in infrastructure was completed in the second quarter and know how transfer for the complex processes has been started. The next step will be to install the machinery.

OUTLOOK 2013/14 The positive development and performance in the first half of the financial year 2013/14 reaffirm our strategic focus on the high-end market. Taking seasonality into account, as things stand we are forecasting revenue growth of five percent with an EBITDA margin of 18-20 percent for the current financial year.

With best regards

Andreas Gerstenmayer Chairman of the Management Board

Heinz Moitzi Chief Technical Officer

Corporate governance information

The Annual General Meeting of 4 July 2013 in the first half of the current financial year resolved on the payment of a dividend of EUR 0.20 per share out of retained earnings as at 31 March 2013. The dividend distribution of EUR 4.7m took place on 25 July 2013.

No further treasury shares were acquired under the share repurchase scheme in the first half of this financial year.

AT&S CAPITAL INCREASE On 17 September 2013 the Supervisory Board of AT&S AG made a policy decision and passed a resolution to carry out a capital increase by issuing up to 12,950,000 new shares, and also to sell 2,577,412 shares held by AT&S AG.

As a first step, the Project Committee of the Supervisory Board made an implementing decision authorising a resolution to allot 3,367,471 new shares representing subscription rights waived by the two principal shareholders to institutional investors in an accelerated bookbuilding process. The issue was registered in the Register of Companies on 20 September 2013. On the basis of a second implementing decision of the Project Committee of the Supervisory Board on 4 October 2013, a further 9,582,529 new shares were issued at a price of EUR 6.50 per share. This second increase in capital was registered in the Register of Companies on 5 October 2013, after the end of the half-yearly reporting period. In the course of issuing new shares, at the same time the 2,577,412 shares held by AT&S AG were sold at a price of EUR 6.50 per share. In consequence, AT&S AG no longer holds any treasury stock.

Directors' Holdings & Dealings

AT&S STOCK OPTIONS Stock options held by members of the Management Board were as follows (Supervisory Board members do not receive stock options):

	Stock options
	as of	Allocation of	Allocation of	Origin of stock options on stock Allocation of	Allocation of
	30 September 2013	1 April 2012	1 April 2011	1 April 2010	1 April 2009
Andreas Gerstenmayer	120,000	40,000	40,000	40,000	0
Heinz Moitzi	114,000	30,000	30,000	30,000	24,000
Exercise Price (EUR)		9.86	16.60	7.45	3.86

DIRECTORS' DEALINGS In the course of the capital increase there were the following directors' dealings in respect of AT&S senior managers and related parties for the purposes of section 48d Austrian Stock Exchange Act (BörseG):

Notifying person	Legal peron, trust, partnership	Purchase	Sale	Basis		Price per share/right
Brigitte Androsch *		18,100		Exercise of subscription rights	19.09.2013	EUR 6.50
Heinz Moitzi *		1,114		Exercise of subscription rights	20.09.2013	EUR 6.50
Willi Dörflinger *	Dörflinger Management & Beteiligungs GmbH	2,307,692		Exercise of 25.09.2013 subscription rights		EUR 6.50
Gerhard Pichler *		7,650		Exercise of subscription rights	25.09.2013	EUR 6.50
Hannes Androsch *	AIC Androsch International Management Consulting GmbH	769,230		Exercise of subscription rights	25.09.2013	EUR 6.50
Georg Riedl, Gerhard Pichler *	Dörflinger Private Foundation		349,913	Sale of subscrip tion rights to AT&S shares (ISIN: AT0000A120R2)	26.09.2013	EUR 0.0150
Hannes Androsch *		153,846		Exercise of subscription rights	27.09.2013	EUR 6.50
Georg Riedl *		6,192		Exercise of subscription rights	09.10.2013	EUR 6.50

The relevant directors' dealings notifications can be viewed and downloaded in the FMA Directors' Dealings Database, at http://www.fma.gv.at/en/companies/issuers/directors-dealings/directorsdealings-database.html.

*The decision to increase the capital was made on 17 September 2013 and was put into effect on 9 October 2013. This was also the date of the transfer of ownership of the shares acquired by exercising the subscription rights. Although transfer of ownership of the shares only took place on 9 October – after the end of the reporting period – the transactions are disclosed now in the interests of completeness and transparency.

AT&S stock

SHAREHOLDINGS Before the capital increase, Androsch Privatstiftung and Dörflinger Privatstiftung held 21.51% and 17.74% of AT&S stock respectively. After the successful conclusion of the transaction on 9 October 2013, Androsch Privatstiftung and Dörflinger Privatstiftung respectively hold 16.32% and 17.77% of AT&S stock respectively. The free float increased from 50.80% to 65.91%. The successful placing of the shares has strengthened the balance sheet, broadened the investor base and increased the liquidity of the stock.

SHARE PRICE IN THE FIRST SIX MONTHS

OF 2013/14 To provide appropriate support for the capital increase, the Management Board undertook an intensive roadshow programme with investors in Frankfurt, London, Warsaw, Vienna and Zurich. The result was that new institutional funds in Austria and elsewhere became investors. Although the issue price was EUR 6.50, the market price of the share remained higher throughout the whole period of the offer and closed with a slight gain at EUR 6.89 on 30 September 2013. In addition, the liquidity of the stock has more than tripled, as can be seen from the average daily traded volumes for the share over the last 30 days.

AT&S AGAINST THE ATX-PRIME

KEY STOCK FIGURES FOR THE FIRST SIX MONTHS (EUR)

	30 September 2013	30 September 2012
Earnings per share	0,94	0,09
High	8,40	9,60
Low	6,21	6,25
Close	6,89	8,35

AT&S SHARE

	Vienna Stock Exchange
Security ID number	969985
ISIN-Code	AT0000969985
Symbol	ATS
Reuters RIC	ATSV.VI
Bloomberg	ATS AV
Indexes	ATX Prime, WBI SME

FINANCIAL CALENDER

23 January 2014	Publication of results for third quarter 2013/14
08 May 2014	Publication of annual results 2013/14
03 July 2014	20th Annual General Meeting

CONTACT INVESTOR RELATIONS Martin Theyer

Tel.: +43 (0)3842 200-5909 E-mail: m.theyer@ats.net

Interim Financial Report (IFRS) Consolidated Statement of Profit or Loss

1 July - 30 September			1 April - 30 September
(in EUR 1,000)	2013	2012 1)	2013	2012 1)
Revenue	157,392	128,737	299,933	254,771
Cost of sales	(123,693)	(113,507)	(239,474)	(224,100)
Gross profit	33,699	15,230	60,459	30,671
Distribution costs	(7,647)	(7,158)	(15,037)	(13,985)
General and administrative costs	(5,964)	(4,616)	(11,119)	(9,308)
Other operating result	39	1,374	(732)	1,152
Non-recurring items	–	–	(3,004)	–
Operating result	20,127	4,830	30,567	8,530
Finance income	96	1,342	114	1,559
Finance costs	(3,002)	(3,534)	(6,361)	(7,432)
Finance costs - net	(2,906)	(2,192)	(6,247)	(5,873)
Profit before tax	17,221	2,638	24,320	2,657
Income taxes	(1,876)	(1,083)	(2,363)	(594)
Profit for the period	15,345	1,555	21,957	2,063
thereof owners of the parent company	15,334	1,556	21,940	2,066
thereof non-controlling interests	11	(1)	17	(3)
Earnings per share attributable to equity holders of the parent company (in EUR per share):
- basic	0.65	0.07	0.94	0.09
- diluted	0.60	0.07	0.90	0.09
Weighted average number of shares outstanding - basic (in thousands)	23,542	23,323	23,433	23,323
Weighted average number of shares outstanding - diluted (in thousands)	25,517	23,355	24,426	23,355

Consolidated Statement of Comprehensive Income

	1 July - 30 September		1 April - 30 September
(in EUR 1,000)	2013	2012 1)	2013	2012 1)
Profit for the period	15,345	1,555	21,957	2,063
Components to be reclassified to income:
Currency translation differences	(21,834)	(1,425)	(26,596)	15,051
Fair value (losses) of available-for-sale financial assets, net of tax	–	–	–	(20)
Fair value gains of cash flow hedges, net of tax	23	6	56	3
Other comprehensive income for the period	(21,811)	(1,419)	(26,540)	15,034
Total comprehensive income for the period	(6,466)	136	(4,583)	17,097
thereof owners of the parent company	(6,478)	136	(4,599)	17,097
thereof non-controlling interests	12	–	16	–

Consolidated Statement of Financial Position

	30 September	31 March
(in EUR 1,000)	2013	2013 1)
ASSETS
Non-current assets
Property, plant and equipment	428,841	437,763
Intangible assets	9,351	1,952
Financial assets	96	96
Deferred tax assets	23,718	21,323
Other non-current assets	9,526	9,657
	471,532	470,791
Current assets
Inventories	68,174	62,417
Trade and other receivables	130,631	111,802
Financial assets	835	770
Current income tax receivables	631	657
Cash and cash equivalents	101,931	80,226
	302,202	255,872
Total assets	773,734	726,663
EQUITY
Share capital	66,747	45,914
Other reserves	15,812	42,351
Retained earnings	233,905	216,630
Equity attributable to owners of the parent company	316,464	304,895
Non-controlling interests	(35)	(51)
Total equity	316,429	304,844
LIABILITIES
Non-current liabilities
Financial liabilities	167,658	168,665
Provisions for employee benefits	23,100	22,277
Other provisions	10,099	10,437
Deferred tax liabilities	7,169	6,386
Other liabilities	3,114	3,948
	211,140	211,713
Current liabilities
Trade and other payables	98,551	77,348
Financial liabilities	137,745	129,837
Current income tax payables	4,380	1,299
Other provisions	5,489	1,622
	246,165	210,106
Total liabilities	457,305	421,819
Total equity and liabilities	773,734	726,663

Consolidated Statement of Cash Flows

(in EUR 1,000)		1 April - 30 September
		2012 1)
Cash flows from operating activities
Profit for the period	21,957	2,063
Adjustments to reconcile profit for the period to cash generated from operating activities:
Depreciation, amortisation and impairment of property, plant and equipment and intangible assets	34,844	35,382
Changes in non-current provisions	571	135
Income taxes	2,363	594
Finance costs	6,247	5,873
(Gains)/losses from the sale of fixed assets	18	(26)
Release from government grants	(756)	(163)
Other non-cash expense/(income), net	425	(314)
Changes in working capital:
- Inventories	(8,565)	(6,604)
- Trade and other receivables	(23,730)	1,879
- Trade and other payables	12,400	(8,058)
- Other provisions	3,928	(305)
Cash generated from operating activities	49,702	30,456
Interest paid	(6,500)	(5,971)
Interest and dividends received	107	201
Income taxes paid	(2,982)	(3,377)
Net cash generated from operating activities	40,327	21,309
Cash flows from investing activities
Capital expenditure for property, plant and equipment and intangible assets	(40,143)	(28,821)
Proceeds from sale of property, plant and equipment and intangible assets Proceeds from sale of available-for-sale financial assets	151 –	3,350 35
Purchases of financial assets Proceeds from sale of financial assets	(114) 27	(56) 146
Net cash used in investing activities	(40,079)	(25,346)
Cash flows from financing activities
Changes in other financial liabilities	7,341	37,987
Proceeds from government grants	737	32
Dividends paid	(4,665)	(7,463)
Proceeds of share issue	20,833	–
Net cash generated from financing activities	24,246	30,556
Net increase in cash and cash equivalents	24,494	26,519
Cash and cash equivalents at beginning of the year	80,226	29,729
Exchange gains/(losses) on cash and cash equivalents	(2,789)	796
Cash and cash equivalents at end of the period	101,931	57,044

Consolidated Statement of Changes in Equity

				Equity attributable
				to owners	Non
	Share	Other	Retained	of the parent	controlling	Total
(in EUR 1,000)	capital	reserves	earnings	company	interests	equity
31 March 2012 1)	45,535	22,555	209,521	277,611	(55)	277,556
Profit for the period	–	–	2,066	2,066	(3)	2,063
Other comprehensive income for the period	–	15,031	–	15,031	3	15,034
thereof currency translation differences	–	15,048	–	15,048	3	15,051
thereof change in available-for-sale financial assets, net of tax	–	(20)	–	(20)	–	(20)
thereof change in hedging instruments for cash flow hedges, net of tax	–	3	–	3	–	3
Total comprehensive income for the period	–	15,031	2,066	17,097	–	17,097
Dividend relating to 2011/12	–	–	(7,463)	(7,463)	–	(7,463)
30 September 2012 1)	45,535	37,586	204,124	287,245	(55)	287,190
31 March 2013 1)	45,914	42,351	216,630	304,895	(51)	304,844
Profit for the period	–	–	21,940	21,940	17	21,957
Other comprehensive income for the period	–	(26,539)	–	(26,539)	(1)	(26,540)
thereof currency translation differences	–	(26,595)	–	(26,595)	(1)	(26,596)
thereof change in hedging instruments for cash flow hedges, net of tax	–	56	–	56	–	56
Total comprehensive income for the period	–	(26,539)	21,940	(4,599)	16	(4,583)
Dividend relating to 2012/13	–	–	(4,665)	(4,665)	–	(4,665)
Proceeds of share issue	20,833			20,833		20,833
30 September 2013	66,747	15,812	233,905	316,464	(35)	316,429

Segment Reporting

1 April - 30 September 2013

(in EUR 1,000)	Mobile Devices	Industrial & Automotive	Others	Elimination/ Consolidation	Group
Segment revenue	190,689	135,493	3,396	(29,645)	299,933
Intersegment revenue	(26,122)	(2,870)	(653)	29,645	–
Revenue from external customers	164,567	132,623	2,743	–	299,933
Operating result	27,309	4,204	(965)	19	30,567
Finance costs - net					(6,247)
Profit before tax					24,320
Income taxes					(2,363)
Profit for the period					21,957
Property, plant and equipment and
intangible assets	380,515	47,049	10,629	–	438,192
Investments	41,934	2,696	8,062	–	52,692
Depreciation/amortisation	30,036	4,155	653	–	34,844
Non-recurring items	–	3,004	–	–	3,004

1 April - 30 September 2012 1)

		Industrial &		Elimination/
(in EUR 1,000)	Mobile Devices	Automotive	Others	Consolidation	Group
Segment revenue	157,076	115,818	831	(18,954)	254,771
Intersegment revenue	(18,592)	(302)	(60)	18,954	–
Revenue from external customers	138,484	115,516	771	–	254,771
Operating result	3,676	6,057	(1,284)	81	8,530
Finance costs - net					(5,873)
Profit before tax					2,657
Income taxes					(594)
Profit for the period					2,063
Property, plant and equipment and intangible assets 2)	383,203	49,095	7,417	–	439,715
Investments	21,634	2,003	1,305	–	24,942
Depreciation/amortisation	30,284	4,011	1,087	–	35,382
Non-recurring items	–	–	–	–	–

1) Adjusted in application of IAS 19 revised

2) Value as of 31 March 2013

INFORMATION BY GEOGRAPHIC REGION

Revenue broken down by customer region, based on ship–toregion:

Property, plant and equipment and intangible assets broken down by domicile:

	1 April - 30 September
(in EUR 1,000)	2013	2012
Austria	10,049	9,786
Germany	64,630	64,095
Hungary	7,083	11,191
Other European countries	29,023	23,354
Asia	143,528	118,501
Canada, USA, Mexico	41,801	24,741
Other	3,819	3,103
	299,933	254,771

	30 September	31 March
(in EUR 1,000)	2013	2013
Austria	32,979	26,056
China	380,475	383,157
Others	24,738	30,502
	438,192	439,715

Notes to the Interim Financial Report

GENERAL

ACCOUNTING AND VALUATION POLICIES The interim report for the six months ended 30 September 2013 has been prepared in accordance with the standards (IFRS and IAS) of the International Accounting Standards Board (IASB), taking IAS 34 into account, and the interpretations (IFRIC and SIC), as adopted by the European Union.

The consolidated interim financial statements do not include all the information contained in the consolidated annual financial statements and should be read in conjunction with the consolidated annual financial statements for the year ended 31 March 2013.

In June 2011 the International Accounting Standards Board (IASB) published amendments to IAS 19 Employee Benefits (IAS 19 revised). The revised IAS 19 replaces the expected return on plan assets and the interest cost on pension obligations with the net interest expense or income. Actuarial gains and losses, effects of the limit on net asset value (asset ceiling), and in part also the actual income from plan assets are to be recognised as remeasurements in the period in which they arise, as part of other comprehensive income (OCI) under equity. The corridor method and the immediate recognition of actuarial gains and losses through profit or loss are no longer permissible. The revised IAS 19 prescribes retroactive application and requires disclosure of the effects of first-time application on the opening balance sheet. These changes were applied in the current interim financial statements, as they were in the interim financial statements as at 30 June 2013, and the comparative figures have accordingly been restated. The equity ratio as at 31 March 2013 was reduced from 43% to 42%.

The consolidated interim statements for the six months ended 30 September 2013 are unaudited and have not been the subject of external audit review.

NOTES TO THE STATEMENT OF PROFIT OR LOSS

REVENUE Sales in the first half of the current financial year of EUR 299.9m were 18% higher than in the same period last year.

This positive development reflected improved sales in all business segments. Thanks to continuing strong demand for smartphones, sales in Mobile Devices were up 19%. Industrial & Automotive sales were markedly up, by 15%, on the same period last year. Automotive and Medical & Healthcare in particular generated growth, while Industrial was also able to report a modest increase in sales in spite of the overall economic situation.

In terms of customer locations, sales in all geographic regions also rose. The greatest increase was from 10% to 14% with our American customers. Asian customers continued to account for the lion's share of revenue, accounting for EUR 143.5m or 48% of the total.

The distribution of production volumes – 75% in Asia and 25% in Europe – was unchanged from the comparable period last year.

GROSS PROFIT At EUR 60.5m first-half gross profit was up significantly on the EUR 30.7m achieved in the same period of the financial year 2012/13. This highly satisfactory outcome is attributable both to good capacity utilisation at all of the Group's plants and to the unrelenting pursuit of increased efficiency.

Broken down by segment, Mobile Devices saw its gross profit margin advance from 10% to 21%, while that of Industrial & Automotive edged up from 15% to 16%.

OPERATING RESULT On the basis of the very satisfactory gross profit, the consolidated operating profit of EUR 30.6m or 10.2% was also highly satisfactory. Management's decision to close the Klagenfurt plant because of its continuing losses meant that a provision of EUR 3.0m in expenses for the first quarter of the current financial year was recognised under non-recurring items. The overall operating profit before taking this non-recurring item into account was EUR 33.6m for an EBIT margin of 11.2%.

From the segment perspective, as a result of the improvement in gross profit Mobile Devices reported a highly gratifying jump in operating profit to EUR 27.3m, compared with EUR 3.7m in the first half of the previous financial year. Industrial and Automotive's operating profit narrowed as a result of the restructuring provisions for this business unit's Klagenfurt plant and unfavourable exchange rate differences relating to the Indian rupee.

FINANCE COSTS - NET The changed financing structure and lower interest rates meant that interest expense fell by roughly EUR 1.2m to EUR 5.7m. Currency fluctuations were responsible for expenses of some EUR 1.5m. Total financial expenditure of EUR -6.2m was EUR 0.3m higher than in the same period last year.

INCOME TAXES The change – as compared with the same period last year – in the effective rate of tax on a consolidated basis is principally a consequence of the varying proportions of Group earnings contributed by individual companies subject to different tax regimes.

Taxes on income are also significantly affected by the measurement of deferred taxation. For a large part of the tax loss carryforwards arising, no deferred tax assets have been recognised, since the likelihood of their being realisable in the foreseeable future is low.

NOTES TO THE STATEMENT OF COMPREHENSIVE INCOME

CURRENCY TRANSLATION DIFFERENCES The negative variation of in the foreign currency translation reserve of the current financial year (EUR -26.6m) was the result of the changes in exchange rates of the Group's functional currencies, the Chinese renminbi, the Hong Kong dollar, the US dollar and the Indian rupee against the Group reporting currency, the euro.

NOTES TO THE STATEMENT OF FINANCIAL POSITION

ASSETS AND FINANCES The net debt of EUR 202.5m was less than the EUR 217.4m outstanding at 31 March 2013. Net current assets rose from EUR 102.7m at 31 March 2013 to EUR 114.0m. The net gearing ratio of 64% at the end of the half-year was also significantly lower than the level of 71% achieved at the end of the most recent financial year.

At 30 September 2013 the Group had other financial liabilities amounting to EUR 56.6m, in connection with contractually binding investment commitments, the majority of which were related to the expansion of the new plant in Chongqing. As at 31 March 2013, other financial liabilities stood at EUR 16.9m.

On 17 September 2013 the Supervisory Board of AT&S AG made a policy decision and passed a resolution to carry out a capital increase by issuing up to 12,950,000 new shares, and also to sell 2,577,412 shares held by AT&S AG.

As a first step, the Project Committee of the Supervisory Board made an implementing decision authorising a resolution to allot 3,367,471 new shares representing subscription rights waived by the two principal shareholders to institutional investors in an accelerated bookbuilding process. An issue price for all new shares was set at EUR 6.50 during the course of this preplacement. The issue was registered in the Register of Companies on 20 September 2013. After deduction of transaction costs, this increased the subscribed capital from EUR 45.9m to EUR 66.7m, which is reflected in this half-yearly report.

On the basis of a second implementing decision of the Project Committee of the Supervisory Board on 4 October 2013, a further 9,582,529 new shares were issued at a price of EUR 6.50 per share. The gross proceeds of the issue were EUR 62.3m. As the second tranche of the capital increase was not entered into the company register until 5 October 2013, and therefore after the end of the reporting period, this part of the capital increase is not reflected this interim report.

Consolidated equity increased from EUR 304.8m at 31 March 2013 to EUR 316.4m. This change reflects the consolidated profit of EUR 22.0m, unfavourable exchange rate differences of EUR -26.6m, the dividend payment of EUR -4.7 m, as well as the capital increase of EUR 20.8m.

TREASURY SHARES In the 19th Annual General Meeting of 4 July 2013 the Management Board was again authorised for a period of 30 months from the date of the resolution to acquire and retire the Company's own shares up to a maximum amount of 10% of the share capital. The Management Board was also again authorised – for a period of five years (i.e., until 3 July 2018) and subject to the approval of the Supervisory Board – to dispose of treasury shares otherwise than through the stock exchange or by means of public offerings, and in particular for the purpose of enabling the exercise of employee stock options or the conversion of convertible bonds, or as consideration for the acquisition of businesses or other assets.

No further treasury shares were acquired under the share repurchase scheme in the first half of this financial year. At 30 September 2013 and taking into account the stock options exercised, the Group held the same number of treasury shares – 2,577,412 shares, or 8.81% of the issued share capital – as at 31 March 2013, with a total acquisition cost of EUR 46.6m.

At the same time as the second tranche of new shares was issued, the 2,577,412 shares held by AT&S AG were sold at a price of EUR 6.50 per share. In consequence, AT&S AG no longer holds any treasury stock. As this transaction took place on 5 October 2013, and therefore after the end of the reporting period, the treasury stock previously held by the Group is still reflected in this report.

NOTES TO THE STATEMENT OF CASH FLOWS Net cash generated by operating activities in the first half of the financial year amounted to EUR 40.3m, compared with EUR 21.3m in the same period last year. The main reason for this considerable increase was the EUR 20.0m increase in consolidated net income.

Net cash used in investing activities amounted to EUR -40.1m. The investments in the current financial year primarily relate to the new production facility in Chongqing.

Cash inflows from financing activities came to EUR 24.2m, of this amount EUR 20.8m related to the capital increase.

OTHER INFORMATION

DIVIDENDS The Annual General Meeting of 4 July 2013 in the first half of the current financial year resolved on the payment of a dividend of EUR 0.20 per share out of retained earnings as at 31 March 2013. The dividend distribution of EUR 4.7m took place on 25 July 2013.

RELATED PARTY TRANSACTIONS In connection with various projects, in the first half of the financial year 2013/14 fees amounting to EUR 182,000 were payable to AIC Androsch International Management Consulting GmbH, fees of EUR 4,000 were payable to Dörflinger Management und Beteiligungs GmbH and fees of EUR 6,000 to Riedl & Ringhofer (lawyers).

Leoben-Hinterberg, 5 November 2013

Management Board

Andreas Gerstenmayer m.p. Heinz Moitzi m.p.

Group Interim Management Report

BUSINESS DEVELOPMENTS AND PER- FORMANCE Compared with the low level of demand in the same period of the last financial year, the results for the first half of the financial year 2013/14 were thoroughly satisfactory. This was largely the result of above average capacity utilisation for this particular reporting period.

There were significant increases in half-yearly sales in all segments compared with the same period last year, with Mobile Devices reporting a 19% increase and Industrial & Automotive posting gains of 15%.

In terms of customer regions, sales increased in America, and in Asia and Europe. The proportion of printed circuit board sales produced in Asia – 75% – was more or less unchanged from last year.

In the first half of the current financial year capacity utilisation was good in all AT&S plants, and correspondingly, the gross profit for the period was the highest in AT&S's history.

In the light of the continuing loss-making situation in the Klagenfurt plant, in May 2013 the Management Board decided to close it. A provision of EUR 3.0m has been charged to expense, in spite of which EBIT amounted to EUR 30.6m, and the EBIT margin was 10.2%.

MATERIAL EVENTS AFTER THE END OF THE REPORTING PERIOD On 9 October 2013 the Group successfully carried out a capital increase by issuing 12,950,000 new shares and also sold 2,577,412 shares held by AT&S AG. The transaction generated gross proceeds of EUR 100.9m. The transaction is presented in detail in the supplementary notes to the interim financial report for the half year ended 30 September 2013.

SIGNIFICANT RISKS, UNCERTAINTIES AND OPPORTUNITIES There were no material differences in the categories of risk exposure in the course of the first half of the financial year 2013/14 compared with those described in detail in the notes to the 2012/13 consolidated financial statements under II. Risk Report.

AT&S's liquidity is excellent. The issue of a five-year EUR 100m bond in November 2011 and the provision of a longterm loan by Oesterreichische Kontrollbank in April 2012 mean that ample long-term funds are available. The EUR 80m bond that matured in May 2013 has been replaced by money market financing. Sufficient short-term credit facilities are also available to cover working capital requirements. In addition to this, on the basis of the authorisation conferred in the Annual General Meeting of 4 July 2013, the Management Board also has the option of issuing convertible bonds up to a nominal value of EUR 100,000,000. As regards planned investments in Chongqing and the necessary liquidity for the upcoming investment phase, we are currently engaged in bank negotiations to secure the necessary long-term financing.

In the first half of financial year 2013/14 there was a significant positive cash flow from operating activities. On the basis of expected continuing net cash inflows from operating activities and the extensive financing options, enough liquidity is available to cover all currently planned investments.

For more information on the use of financial instruments, please refer to the detailed Risk Report in the notes to the consolidated annual financial statements 2012/13. Changes in the exchange rates of functional currencies against the reporting currency, the euro, are mainly recognised directly in equity without affecting profit and loss.

Net gearing of 64% at 30 September 2013 was significantly lower than at the end of the financial year 2012/13. Unfavourable exchange rate differences caused by the rise of the euro against the Chinese renminbi, the Hong Kong dollar, the US dollar and the Indian rupee led to a reduction of equity.

At the start of the current financial year, AT&S considerably exceeded its external growth expectations. With respect to the opportunities and risks related to developments in the external environment for the financial year 2013/14 as a whole, the assumption is still that total sales of the printed circuit board industry worldwide will increase.

OUTLOOK The volatility of the global economy continues to make it very difficult to reliably quantify future requirements, which in turn makes forecasting future performance more uncertain. Taking seasonal patterns into account we are forecasting moderate revenue growth of 5% and an EBITDA margin of 18-20% for the financial year 2013/14.

Leoben-Hinterberg, 5 November 2013

Management Board

Andreas Gerstenmayer m.p. Heinz Moitzi m.p.

Statement of all Legal Representatives

We confirm to the best of our knowledge that the interim financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the group as required by the applicable accounting standards and that the group interim management report gives a true and fair view of important events that have occurred during the first six months of the financial year and their impact on the interim financial statements, of the principal risks and uncertainties for the remaining six months of the financial year and of the major related party transactions to be disclosed.

Leoben-Hinterberg, 5 November 2013

The Management Board

Andreas Gerstenmayer Chairman of the Management Board

Heinz Moitzi Chief Technical Officer

Contact details and credits

CONTACT

AT & S Austria Technologie & Systemtechnik Aktiengesellschaft Fabriksgasse 13 A-8700 Leoben Austria Tel: +43 (0)3842 200-0 Fax: +43 (0)3842 200-216 www.ats.net

DESIGN

Werbeagentur DMP Digital Motion Picture Datenverarbeitungs GmbH www.agentur-dmp.at

PICTURE ARCHIV

www.shutterstock.com

PUBLIC RELATIONS AND INVESTOR RELATIONS

Martin Theyer Tel.: +43 (0)3842 200-5909 E-mail: m.theyer@ats.net

EDITORIAL TEAM

Michael Dunst Stefan Greimel Christina Schuller Monika Stoisser-Göhring Martin Theyer

PUBLISHED BY AND RESPONSIBLE FOR CONTENT

AT & S Austria Technologie & Systemtechnik Aktiengesellschaft Fabriksgasse 13 A-8700 Leoben Austria www.ats.net